Don’t call it a comeback – The Green Deal Home Improvement Fund is back

The Green Deal Home Improvement Fund (GDHIF) first launched back in summer and £8.5m were issued within the scheme’s first two weeks. The original initiative was closed within weeks of launch as the £120m available were applied for quickly.

The new funding is expected to be spread over a number of phases, including an initial launch this week and another next April. The first stage is expected to be made up of £35m to £50m.

Improving energy efficiency

The GDHIF is a government designed incentive, which was launched in June 2014 and aims to improve the energy efficiency of British homes. Under its previous iteration homes could apply for up to £7,600 worth of cash back and incentives, when installing energy efficient improvements. The latter included double glazing, new more efficient boilers and solid wall insulation.

Anyone interested in applying to the scheme had to have a Green Deal Assessment carried out, or have a recent Energy Performance Certificate for their home. All work had to be undertaken by a Green Deal Assessor.

The latest official figures show that £30m of the initial GDHIF have been used as of end October 2014. Approximately 8,750 energy measures have been implemented.

Speaking at the Liberal Democrat Conference, Energy Secretary Ed Davey, announced plans to bring back the Green Deal Home Improvement Fund.

The scheme will provide £100m of subsidies to those looking to insulate their home or make other energy saving improvements. Under the previous itineration each household was eligible for a maximum of £7,600 worth of funding.

More popular than original Green Deal

The Green Deal Home Improvement Fund was launched as an extension to the Green Deal, but has since proved far more popular than the original scheme, selling out just seven weeks after its debut.

“We will extend the Green Deal Home Improvement Fund that proved so popular earlier this year,” Davey said during his speech, adding, “New boilers, double glazing, better insulation, so that people can permanently cut their energy bills.”

The Department for Energy and Climate Change is expected to provide more details on who can apply for the new scheme and what home improvements will be covered by it, in late November.

Green Deal Home Improvement Fund terms

The original Green Deal Home Improvement Fund went live in June and allowed households to apply for up to £7,600 in funding, to improve their home’s energy efficiency.

The scheme sold out in seven weeks and was promptly stopped. Homes which successfully applied for funding were able to claim up to £1,000 for energy saving improvements, £6,000 for solid wall insulation and hundreds of pounds for assessments and other services.

The Green Deal scheme has been labelled a “disappointing failure” in a report compiled by a committee of MPS. Recommendations made for future programmes aimed at increasing energy efficiency, include implementing council tax reductions and lower stamp duty fees.

Energy Secretary Ed Davey has responded to the report, saying council tax discounts for those who carry out improvements will appear on his party’s 2015 manifesto. He added that the target is to “improve the energy efficiency of 1 million homes by March 2015 – and we’re on track.”

Green Deal was ‘flawed’

The committee highlighted the low sign up rate as one of the key indicators of the scheme’s failure. Speaking on the issue the committee stated: “With such extremely low levels of take-up eighteen months into the life of the policy, the Green Deal has so far been a failure.”

It was hoped that the Green Deal would encourage millions of people to look at improving the energy efficiency rating of their homes.

According to the committee the Green Deal was badly planned and inefficiently implemented. The report also states that the scheme was poorly communicated.

An extract from the committee’s report reads: “Rather than facilitating access to energy efficiency measures and creating momentum in the market, the Green Deal has caused frustration and confusion for both consumers and the supply chain. The first eighteen months of the Green Deal have been largely wasted.”

Few homes signed up to original scheme

The original Green Deal launched back in 2013 and was originally promoted as the scheme which would drive the installation of energy efficient improvement in homes across the UK.

The scheme provided loans to those looking to fund the cost of upgrading their homes, including the installation of more energy efficient boilers and solid wall insulation.

The initial loan was expected to be covered by the energy savings obtained thanks to the energy efficient installations. However, the scheme failed to meet expectations and the number of households which signed up was much lower than the Department for Energy and Climate Change (DECC) had hoped for. Fewer than 4,000 homes had signed up by July 2014.

A follow up initiative, entitled the Green Deal Home Improvement Fund (GDHIF), launched in June 2014 and offered up to £7,600 worth of grants to homes fitting energy efficient improvements.

The GDHIF proved more successful in terms of uptake and the £120m allocated for the scheme ran out in a matter of weeks.

The £120m Green Deal Home Improvement Fund (GDHIF) is empty and no new applications are being accepted, due to “overwhelming popular demand”.

In a message issued last night, the Department of Energy and Climate Change (DECC) explained that a jump in the number of applications received over the past two days meant the budget was completely exhausted.

All applications from households received before the scheme closed will be honoured and DECC will monitor how many vouchers linked to the GDHIF are cashed and will make further funds available if it turns out the initial fund will not be exhausted.

‘GDHIF has proved extremely popular’

Speaking on the scheme Parliamentary Under Secretary of State for Energy & Climate Change, Amber Rudd, said: “The Green Deal Home Improvement Fund is a world first and in a short space of time it has proved extremely popular.

“We were always clear there was a budget which is why we encouraged people to act quickly. As a result, many more families will now benefit from Government help to have warmer homes which use less energy.”

According to the Telegraph, homeowners who have carried out a Green Deal Assessment, but not yet registered for the GDHIF may find themselves £100 out of pocket.

What next for the Green Deal?

The GDHIF was originally described as a “Green Deal part two” after the initial scheme failed to gain much interest from the public. In fact, of a predicted 10,000 applicants by the end of 2013, only 2,828 had signed up as of this May.

Policy and Public Affairs Officer at the UK Green Building Council Richard Twinn said the government needed to balance the need for long-term energy efficiency drivers with short-term initiatives.

Speaking on the success of the GDHIF he told the Telegraph: “The sudden and immediate closure of this fund is another setback for the energy efficiency industry because companies have specifically geared up to market and deliver through this scheme.

“These constant changes are not helpful to industry. We now need urgent clarity as to whether Government will bring forward any more money to ensure continuity of Green Deal work.”

According to the Telegraph, households have already successfully applied for £25m of the total put aside by the Government to improve energy efficiency in the UK.

Although £120m has been set aside for homes to claim as part of the Green Deal Home Improvement Fund (GDHIF), of this only the first £50m guarantees applicants up to £7,600 in grants. Once the £50m runs out, it is likely that the maximum grant figure will be reduced.

The money is allocated on a first come first served basis.

Davey: ‘People would be wise to apply early’

Speaking on the success of the initiative, Energy Secretary Ed Davey said: “We are very pleased with the take-up – it is slightly higher than our expectations – but it is a bit early to be clear how it will pan out.

“I think people would be wise to apply early.”

New figures released by the Department of Energy & Climate Change (DECC) have revealed that 4,405 homes in England and Wales have received vouchers to carry out home improvements under the scheme.

How does the Green Deal Home Improvement Fund work?

Under the GDHIF, which was launched in June this year, homes can claim up to £7,600 to have energy saving measures installed. These include the addition of solid wall insulation, double glazing, replacement boilers and more.

Anyone who wishes to apply for funding under the GDHIF, will need to have a Green Deal Assessment carried out, or have an Energy Performance Certificate that is less than two years old. All work must be carried out by a registered Green Deal provider.

For additional information on how to apply for the GDHIF click through to our dedicated guide.

New Green Deal offers homes up to £7,600 to spend on energy efficiency measures

For more information on the Green Deal Home Improvement Fund click through to our dedicated guide.

Updated – Government announces £8.5m have been issued within the scheme’s first two weeks.

As of 26 June, 2821 applications have been made for the Green Deal Home Improvement Fund.

Energy and Climate Change Secretary Ed Davey said: “I want as many people as possible to benefit from this unmissable offer. It won’t be around forever, so sign up now and get your home ready for the winter.”

Green Deal seeks to improve energy efficiency of UK homes

The Green Deal home Improvement Fund (GDHIF) launched earlier this month and is a government backed incentive designed to improve the energy efficiency of households across the UK.

Under the GDHIF, consumers can claim up to £7,600 worth of cashback and incentives for carrying out a number of improvements. These include installing double glazing, getting a more efficient heating system and having solid wall insulation installed.

If you are interested in signing up, you might not have too much time to make your decision as the current GDHIF offers are only guaranteed until the government’s initial £50m investment runs out.

Davey : New scheme is ‘very generous’

When the Green Deal first launched in January 2013, it was met with limited success and much criticism. However, Davey has said the Government has learnt from its mistakes and the revamped scheme is much more generous.

Do keep in mind that the scheme will not cover the full cost of any work you decide to undertake on your home. Cashback is limited to two thirds of your expenses and you will be expected to cover the difference. The Green Deal does operate a loan scheme, however, the average loan rate, 6.9%, is unlikely to be the most attractive on the market.

Am I eligible for the GDHIF?

Home owners, tenants and landlords living in England and Wales looking to improve the energy efficiency of a domestic property are likely to be able to take advantage of the GDHIF.

How does it work?

The GDHIF is made up of four distinct offers. Of these, either Core offers 1 and 2 (or both), must be selected by an interested party. These will form the core of the Green Deal home improvement package. Once these have been selected, consumers have the option to select either one or both of the Add-on offers available (Add-on 3 is only open to those who have moved home in the 12 months before applying to the GDHIF).

How to get started?

The easiest way to find out if it’s worth signing up to the GDHIF is to apply for a Green Deal Assessment. This means a registered assessor will inspect your home and work out what improvements it would benefit from. The latter will set you back about £120, but you will be able to reclaim £100 of this if you decide to go ahead with any of the measures recommended.

Once you have made up your mind about what improvements you would like to have made, you will need to apply for a cahsback voucher using the phone number or website listed above. Your assessor may be able to offer a hand with this part of the process.

Once you receive your voucher you have six months to have the improvements installed and claim your cashback.

Ed Davey branded the new Green Deal Home Improvement Fund as ‘very generous’

The new initiative is a response to criticisms that the Green Deal’s previous itineration was too complicated and didn’t attract enough people. Only 2,439 Green Deal plans were in progress at the end of April this year.

Households which sign up to the Green Deal Home Improvement Fund (GDHIF) will be able to claim a maximum of £7,600 cashback for installing energy efficiency improvements such as double glazing, insulation and new boilers.

About £120m has been earmarked for the GDHIF and the money will be allocated on a first come first served basis.

New deal: ‘much more generous […] much simpler’

In an interview with the Guardian, Energy Secretary Ed Davey said: “I think it’s much more generous. It’s also much simpler. We did a lot of research on what consumers would react to, to make their homes warmer and cheaper to run.

“Research also showed that people liked the ‘pick two from a list and get £1,000’ approach. We’ve gone for things that people most want – a new boiler, double glazing, cavity wall insulation.”

Critics blast scheme

Critics of this new phase of the Green Deal have argued that the government is investing too much in a scheme which has so far failed to live up to expectations.

Director at the Taxpayers’ Alliance John O’Connell labelled the initiative a “damp squib”, and added, “it’s disappointing the government feels the need to throw more money at it when there’s no indication it will be any more successful.”

The Green Deal home improvement fund will offer thousands of pounds worth of incentives to homeowners for installing energy efficient measures, such as new boilers and solid wall insulation.

The Government hopes this new range of measures will help boost the Green Deal’s disappointing uptake figures.

The Green Deal first launched in January 2013 and was hailed by many as a key part of making Britain’s homes more energy efficient, however, it has since failed to meet expectations.

Up to £7,600 available for households

Under the Green Deal home improvement scheme, households are entitled to:

Up to £1,000 for installing two of the approved energy efficiency measures

Up to £6,000 for installing solid wall insulation

Up to £100, to refund a Green Deal Assessment

The new programme also entitles anyone who purchased their property in the past 12 months, to apply for a further £500 when they carry out relevant improvements.

Hundreds of pounds worth of savings available

According to the DECC, a typical three-bedroom semi-detached house, which installs all of the major measures, including solid wall insulation, would save around £270 on an annual energy bill. Switching to a more energy efficient boiler, would reduce bills by about £100.

Critics of the scheme are likely to point out that that the home improvement fund is still not enticing enough and should include discounts on council tax and stamp duty.

‘Faulty boilers, draughty windows and insufficient insulation’

Speaking on the announcement, Energy and Climate Change Secretary Ed Davey said: “The best way for households to take control of their energy bills is to use less energy.

“Faulty boilers, draughty windows and insufficient insulation all cause properties to leak hundreds of pounds every year. But advice and support through the Green Deal can help put a stop to this.

“By installing energy saving improvements, families across the country can enjoy the benefits of warmer, more energy efficient homes and lower bills.”

Davey hopes upcoming changes will lead to a higher take up rate for the Green Deal

Energy Minister Ed Davey admitted that the uptake of the Green Deal scheme to date had been disappointing, but said he hoped new incentives would change that.

Amongst the changes are more manageable arrangements for private landlords looking to adopt the scheme, which will see tenants covering the expenses via savings achieved on their energy bills.

The Green Deal scheme is an initiative aimed at helping households become more energy efficient and provides loans to cover energy efficiency improvements.

Low uptake does not tell the whole story

Speaking at today’s Ecobuild Conference, Davey said: “The good news is that we have a lot of assessments to go on. But when it comes to converting green deal assessments into finance plans, the story so far has been, let’s face it, disappointing.”

“What we have learned is that the green deal assessment is a bigger part of the green deal than I think we had recognised,” he added.

At present close to 150,000 assessments have been carried out in the UK, as part of the Green Deal.

‘Consumers need all the help they can get to make their homes more energy efficient’

Director of Consumer Policy at uSwitch Ann Robinson said: “We welcome Ed Davey’s proposals today to simplify the Green Deal scheme and make it easier for consumers to take advantage of its benefits. Consumers need all the help they can get to make their homes more energy efficient and keep them warm.

“It is also good to see more encouragement for private landlords to use the scheme, with tenants covering the repayments through their energy bills – but only on the proviso that the tenants’ costs will never be greater than their energy bill savings.”

A less complex proposition

Robinson added that she pleased with the financial backing the initiative would receive: “There is also some good news about the financial incentives package being developed and we look forward to hearing more about this.

“The key point is that Green Deal will be less complex. It should be easier for consumers to engage with it and take advantage of it. If the new measures help people protect themselves against skyrocketing energy bills, they should be encouraged.”

This winter saw each of the big six energy companies put their prices up and despite these being curbed by cuts to green levies, the vast majority of people will see their energy costs rise in 2014. What follows is a list of tips and tricks to help get your energy bills under control this year.

If you’re interested in getting your personal finance and accounts in order this year, our Money news site has five tips to help you on your way.

1. Switch your energy provider

Recent research carried out by uSwitch found that just 38% of homes in Britain have changed their gas and electricity provider. This means the majority of the country continues to overpay for their energy. Run a quick, free price comparison to save up to £350*on your bill.

There are plenty of different options out there for anyone looking to switch to a better energy tariff. You can lock energy rates for up to three years with a number of fixed price tariffs, select a variable plan and hope rates don’t go up, or even pick a tariff that uses ‘green’ methods to produce energy.

*Between 1 June 2013 and 30 November 2013, more than 10% of people who changed energy provider for gas and electricity with uSwitch saved a minimum of £350

2. Turn off lights and appliances when you’re not using them!

An oldie but a goodie. Research from the Energy Saving Trust found that Brits waste between £50 and £86 every year powering appliances which aren’t being used. Just think of all the energy those new video game consoles and gadgets are going to drain when you’re not even in the house.

Do yourself and the environment a favour: if it’s not in use, turn it off.

3. Energy saving gadgets

There are plenty of these out there and of course some are far better than others. Popular items include radiator boosters, which increase the efficiency of your heaters, radiator keys, to make sure your heater isn’t full of air, and plug-in thermostats, to control when the heating is on.

4. Talk to your supplier about installing a smart meter

uSwitch research found that households which already have smart meters are enjoying more accurate billing and higher satisfaction rates in relation to their energy suppliers. 92% of survey respondents said they were happy the equipment was installed and a further 87% said they would recommend getting a smart meter.

Ann Robinson, director of consumer policy at uSwitch, referred to the study as “the clearest evidence yet that smart meters will be a game-changer for consumers.”

5. Help friends and family switch their provider

Already switched your energy provider? How about helping out someone who’s not so savvy. It’s easy to help someone else find a better energy deal, just be by their side as they run a comparison or make a phone call. You know how easy it is to save, but not everyone is as confident using the internet. Join the conversation and get more information with #giftaswitch.

6. Make your home more energy efficient

When it comes to saving energy there are plenty of things you can do to improve your home. Wall and loft insulation will help keep you warm and ensure heat doesn’t keep seeping out through your roof, walls and windows. Draught proofing is a cheap way to keep the heat in during winter.

If you’re interested in any of the above it’s worth checking out the government’s Green Deal scheme. The scheme essentially offers a loan to those looking to improve their homes’ energy efficiency status. You can find out more in our Green Deal guide section.